Goldman Sachs initiates Tempus AI at Neutral, balancing strong diagnostic growth and a $42 million Recursion partnership extension against looming contract renewal risks and a 29% short interest float.
Goldman Sachs initiated Tempus AI with a Neutral rating and a $75 price target, below the current ~$77.84 price, while citing data contract renewal risk.
Tempus AI extended its Recursion partnership through 2029 in a revised agreement that converts discretionary fees into $42 million in committed payments.
Goldman Sachs has initiated coverage on Tempus AI with a Neutral rating and a $75 price target, citing concerns over data contract renewal risks despite strong operating momentum. While the company reported 22% year-over-year revenue growth and secured a key partnership extension with Recursion Pharmaceuticals, analysts remain cautious about the long-term durability of its high-growth data and applications segment.
Goldman Sachs cited concerns regarding the durability of Tempus AI's data and applications segment, specifically noting that several major contracts are approaching renewal periods over the next two years.